As sustainability becomes a key pillar of brand identity, the packaging industry must tread carefully to avoid greenwashing—the act of making misleading environmental claims. In a recent webinar hosted by thinkParallax and Ropes & Gray, legal and communication experts laid out the growing legal and reputational risks surrounding greenwashing, especially as regulatory and technological scrutiny increases.

1. Legal Risks Are Rising—and Expensive

Greenwashing-related legal settlements are reaching tens of millions of dollars, according to Alexander Simkin, partner at Ropes & Gray. He warned that in high-stakes cases, damages could escalate into the hundreds of millions, particularly if false claims are made at scale or tied to valuable products. The packaging industry, often at the front lines of environmental messaging, is especially vulnerable.

A high-profile example in the packaging space is Keurig Dr Pepper’s $1.5 million settlement with the U.S. Securities and Exchange Commission for misleading statements about the recyclability of K-Cup pods. Such cases highlight the importance of ensuring sustainability claims are verifiable, substantiated, and legally sound.

2. Regulatory Updates Lag—But Monitoring Increases

Although greenwashing regulation is advancing at the state and international levels, U.S. federal efforts remain sluggish. The Federal Trade Commission’s Green Guides, last updated in 2012, were expected to receive revisions in 2024. However, political transitions have stalled the process indefinitely, according to Eileen Falk, associate at Ropes & Gray.

Despite this stagnation, enforcement is intensifying. Falk and Simkin both emphasized that activist groups, nonprofits, and tech-powered regulators are becoming more proactive. Automated systems and AI tools are now used to monitor environmental claims online at a scale never before possible, identifying violations that once flew under the radar.

“You don’t have to have a pissed-off customer to get in trouble,” said Sami Grover, communications director at thinkParallax.

3. Progress Over Perfection: A Communications Imperative

Speakers advised companies to focus on transparent and incremental sustainability storytelling. Rather than aiming for a perfect green image, brands should document their claims, outline their reasoning, and communicate genuine progress in tackling environmental challenges.

“People aren’t expecting perfection,” Grover said. “They want to see real, ambitious effort.” Falk echoed this, recommending cross-departmental coordination—especially between legal and marketing—and the implementation of internal policies and training to support substantiated claims.

This proactive approach is not only legally safer but also builds trust with increasingly eco-conscious consumers and stakeholders. The message is clear: Authenticity and diligence in sustainability claims are no longer optional—they're essential.

Key Takeaway for Packaging Stakeholders

For those in the packaging industry, where sustainability messaging is central to product value, this evolving legal landscape is a wake-up call. Companies must invest in compliance frameworks, audit trails, and third-party validation of green claims to stay ahead of regulatory scrutiny and consumer skepticism.